1. At a Glance
Parag Milk Foods is the dairy kid in class who not only brings the biggest tiffin but also insists you try their cheese, ghee, paneer, and protein shake. With35% market share in cheeseand22% in cow ghee, it’s a quiet category killer. They runIndia’s largest automated dairy farm(3,000+ cows), churn out products under four big brands (Gowardhan, Go, Pride of Cows, Avvatar), and claim a cheese plant capacity so large it could probably feed a small European nation.
2. Introduction
Founded in 1992 by Devendra Shah, Parag started with a simple cow-milk dream and turned it into amulti-brand dairy empire. It’s the rare FMCG-meets-agri player that’s equally comfortable selling everyday ghee to the aunty next door and vegetarian whey protein to the gym bro upstairs.
In an industry dominated by co-operatives and legacy brands, Parag plays the premiumisation game.Pride of Cowssells farm-to-home milk in select metros,Avvatarowns the whey-protein-for-vegetarians niche, andGo Cheesepowers pizza chains across India. The group processes3.4 million litres/day, produces110 MT/day each of ghee and cheese, and runs UHT milk lines with European tech.
They also have a moonshot — expanding Bhagyalaxmi Dairy Farms to15,000 cows by 2027on 500 acres. If executed well, that’s a vertically integrated supply chain moat that even large peers will envy.
3. Business Model (WTF Do They Even Do?)
Parag is avalue-added dairy FMCGbusiness with four pillars:
- Core Dairy Products(Gowardhan) – ghee, milk, curd, paneer.
- Value-Added Cheese & UHT Milk(Go) – processed, mozzarella, spreads.
- Premium Fresh Milk(Pride of Cows) – farm-to-home luxury in select cities.
- Sports Nutrition(Avvatar) – whey protein from 100% fresh cow milk, vegetarian-friendly.
Revenue Mix FY25:
- Core Milk Products: 57%
- Liquid Milk: 10%
- Ingredients & SMP: 17%
- New Age Business: 6%
- Others: 10%
Procurement: 15 lakh litres/day from5 lakh+ farmers, 2,400+ collection points, and 300+ chilling units. Distribution:29
depots, 500+ super stockists, 4,500+ distributors, 4.6 lakh retail touchpoints.
4. Financials Overview
| Metric | Latest Qtr (₹ Cr) | YoY Qtr (₹ Cr) | Prev Qtr (₹ Cr) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 852 | 758 | 918 | 12.4% | -7.18% |
| EBITDA | 58 | 56 | 62 | 3.57% | -6.45% |
| PAT | 28 | 27 | 26 | 1.03% | 7.69% |
| EPS (₹) | 2.31 | 2.29 | 2.20 | 0.87% | 5.00% |
Commentary:YoY growth is healthy at double digits, but QoQ looks like the post-festival slump. Margins stable at ~7% OPM — not bad for dairy, but nowhere near FMCG royalty levels.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- TTM EPS: ₹9.97
- Industry P/E: ~27.9
- FV Range (P/E 20–24) → ₹199–₹239
Method 2: EV/EBITDA
- TTM EBITDA: ₹263 crore
- EV/EBITDA range (9–11) → EV: ₹2,367–₹2,893 crore
- Net debt: ₹654 crore → FV equity range: ₹1,713–₹2,239 crore → Per share: ₹144–₹188
Method 3: DCF (simplified)
- Assume FCF growth 8% for 5 years, WACC 11%, terminal growth 4% → ₹180–₹210/share
Educational FV Range:₹180 – ₹230(This FV range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- Capex Expansion:₹161 crore via convertible warrants to fund debt reduction + capacity build-out.
- Bhagyalaxmi Farms 5x Expansion:Target 15,000 cows by 2027 → more control over premium milk supply.
- Premiumisation Play:Cheese
